Contentious issues dog run-up to WTO meeting<\/p>\n
JAKARTA (JP): The run-up to the inaugural ministerial
\nconference of the World Trade Organization (WTO), now less than
\nfour months away, is still being dogged by contentious non-tariff
\nissues dividing developed and developing countries.<\/p>\n
Developing countries in the Asia-Pacific region remain
\ncautious over the proposal by developed countries to bring new
\nissues, including labor standards, investment treaties and
\ncompetition policy, to the WTO ministerial meeting in Singapore
\nin December.<\/p>\n
\"It was felt that over-burdening the WTO with new issues may
\nreduce its effectiveness and detract from the focus on
\nimplementation and on the built-in agenda which is important and
\nheavy enough,\" Adrianus Mooy, executive secretary of the Economic
\nand Social Commission for Asia and Pacific (ESCAP) said here
\nyesterday.<\/p>\n
Mooy was speaking at the closing of the three-day senior ESCAP
\nofficials meeting, which was held to prepare the way for the WTO
\nministerial conference.<\/p>\n
He noted that all ESCAP members are also committed to the
\nwelfare of workers, the protection of their rights and core labor
\nstandards. However, he said, linking trade with social clauses is
\nthe least appropriate way of securing workers rights and
\nimproving labor standards.<\/p>\n
\"On the other hand, there was a danger of creating a new
\ninstrument in the hands of protectionist lobbies for easy abuse,\"
\nMooy said, adding that the issue needs to be studied in greater
\ndepth and the proper forum for pursuing this issue is the
\nInternational Labor Organization.<\/p>\n
Developed countries believe that competition against products
\nmade with cheap labor in developing countries is leading to job
\nlosses in their markets. They are pressing for a uniform minimum
\nwage and other conditions that developing nations believe is
\ndesigned to blunt their competitive edge in world trade.<\/p>\n
A great deal of sensitivity surrounding the upcoming WTO
\nministerial conference is also evident from the items relating to
\ninvestment and competition policy.<\/p>\n
Mooy noted that the proposal for the inclusion of investment
\nrules in the WTO had been prompted largely by a desire to
\nnegotiate a Multilateral Agreement on Investment (MAI) drafted by
\nthe developed countries in the Organization for Economic
\nCooperation and Development.<\/p>\n
\"The general feeling was that the MAI was not appropriate for
\ndeveloping countries,\" Mooy said.<\/p>\n
Supporting Mooy's argument, Ravi Sawhney, director of ESCAP's
\nInternational Trade and Economic Cooperation Division, said that
\nthe investment issue should not be included on the agenda of the
\nSingapore meeting as there is no consensus on this issue.<\/p>\n
\"Developing countries which are concerned with this move feel,
\nby and large, that they cannot open their doors widely to foreign
\ndirect investment without imposing any checks or any controls,\"
\nSawhney said.<\/p>\n
He accused developed countries of pushing MAI into a
\nmultilateral treaty through the WTO without considering the
\nproblems faced by developing countries.<\/p>\n
\"Why don't the developed countries open their markets to the
\nfree flow of labor... Why should they be controlled,\" Sawhney
\nremarked, stressing that most developing countries have the
\nadvantage in the labor sector, especially over unskilled labor.<\/p>\n
Competition policy, he explained, was another issue that
\nshould not yet be brought to the WTO forum, considering that
\nthere is still a large difference of opinion between developed
\nand developing countries on it.<\/p>\n
Developed countries argue that all countries should adopt a
\ncompetition policy, which guarantees a level playing field for
\nall parties, including foreign companies. Developing countries,
\non the other hand, demand more level playing fields in the
\ninternational trading regime.<\/p>\n
He suggested that new issues like investment and competition
\npolicy be studied thoroughly first at the United Nations
\nCommission on Trade and Development (UNCTAD) before being brought
\nto the WTO ministerial meeting.<\/p>\n
\"WTO you know is a negotiating forum ... not a forum for
\nexchanging views. But UNCTAD can provide a forum where countries
\ncan discuss and get a better understanding on different
\npositions. After there is a consensus on an issue, then you bring
\nit to the WTO for negotiation,\" Sawhney said. (rid)<\/p>\n
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